After several days of continuous decline and reaching a temporary high, industrial silicon futures prices have shown a fluctuating downward trend. On May 15th, the main contract for industrial silicon futures, SI2609, fell 2.42% to 8480 yuan/ton; Last week, it closed down for four consecutive trading days, with a weekly decline of 5.99%. The market trading logic returns to a "weak reality", driven by weak demand, high inventory, and expectations of increased supply during the wet season, the fundamentals remain weak.
Overview of the organic silicon market on May 18th: The average price of DMC in the domestic market was reported at 14900 yuan/ton, unchanged from the previous trading day. At present, the manufacturer still has previous orders that have not been fulfilled, and the stock is tight, so there is no need to worry about selling, which gives the manufacturer the confidence to stabilize the price. Both buyers and sellers are currently digesting old orders and inventory, so new order transactions are relatively flat. However, the prices of upstream methanol and metallic silicon are expected to run weakly, and the support on the cost side is not very strong. Although manufacturers want to raise prices, downstream prices are becoming increasingly bearish. Mainly because the two adhesive products of large factories have not only lowered their prices, but also offered a discount of 500 yuan/ton for buying more than 10 cars, resulting in lower prices for finished products compared to raw DMC, leading to a clear "inversion". This abnormal phenomenon has intensified the bearish sentiment in the market, and downstream buyers are hesitant to make purchases easily. On one hand, manufacturers are not worried about selling to support prices, and on the other hand, the inverted price makes people hesitant to buy. It is expected that DMC prices will remain stable in the short term.
On the 15th of the month, Hesheng Silicon Industry (603260) announced that the company had recently received a notice from the controlling shareholder's concerted action person Luo Yi regarding the pledge of some of its company shares. Luo Yi pledged 3.9 million shares to Lv, accounting for 2.03% of his holdings and 0.33% of the company's total share capital. The pledged financing funds were used for production and operation purposes. As of the date of this announcement, Luo Yi, the concerted action person of Ningbo Hesheng Group Co., Ltd. (referred to as "Hesheng Group"), the controlling shareholder of Hesheng Silicon Industry, holds 192493302 shares of the company's shares, accounting for 16.28% of the total share capital of the company. After this pledge, Luo Yi has cumulatively pledged 84000000 shares, accounting for 43.64% of his shareholding and 7.11% of the company's total share capital. As of the date of this announcement, Hesheng Group and its concerted action persons Luo Liguo, Luo Yi, and Luo Yedong directly hold a total of 835722130 shares of the company's shares, accounting for 70.69% of the company's total share capital. After this pledge, the cumulative number of shares directly held by Hesheng Group and its concerted action parties Luo Liguo, Luo Yi, and Luo Yedong in a pledged state is 347705100 shares, accounting for 41.61% of their total holdings of company shares and 29.41% of the company's total share capital.
On the afternoon of May 18th, Chenhua Group announced the resumption of trial production in the flame retardant workshop. Previously, the company's flame retardant workshop was temporarily shut down from November 2024 due to a fire accident. After the accident occurred, the company immediately activated the emergency plan, completed the aftermath disposal work of the accident in a timely manner, and cooperated with relevant departments to investigate the accident and identify hidden dangers in accordance with relevant regulations. Subsequently, the company redesigned and optimized the production process of the flame retardant workshop in accordance with regulatory requirements. Recently, the workshop has been upgraded and officially resumed trial production.
The information disclosure obligor, Handan Chengxin Equity Investment Fund Partnership Enterprise, has acquired 944202253 shares held by Chulin for a total of 1.96 billion yuan per share, accounting for 29.90% of the company's total share capital, at a price of 20.76 yuan per share through an agreement transfer. The share transfer registration procedures have been completed, and Chengxin Fund has become the controlling shareholder, while Handan State owned Assets Supervision and Administration Commission has become the actual controller. Both parties have signed a supplementary agreement to adjust the number of board seats from 7 to 9. Chengxin Fund has nominated 3 non independent directors and 3 independent directors, while Chulin has nominated 2 non independent directors. Chengxin Fund has promised not to transfer control within 7 years after obtaining control.